Sen. Thomas Cullerton

Filed: 11/6/2013

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3271

2    AMENDMENT NO. ______. Amend House Bill 3271, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Economic Development for a Growing Economy
6Tax Credit Act is amended by changing Section 5-15 as follows:
 
7    (35 ILCS 10/5-15)
8    Sec. 5-15. Tax Credit Awards. Subject to the conditions set
9forth in this Act, a Taxpayer is entitled to a Credit against
10or, as described in subsection (g) of this Section, a payment
11towards taxes imposed pursuant to subsections (a) and (b) of
12Section 201 of the Illinois Income Tax Act that may be imposed
13on the Taxpayer for a taxable year beginning on or after
14January 1, 1999, if the Taxpayer is awarded a Credit by the
15Department under this Act for that taxable year.
16    (a) The Department shall make Credit awards under this Act

 

 

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1to foster job creation and retention in Illinois.
2    (b) A person that proposes a project to create new jobs in
3Illinois must enter into an Agreement with the Department for
4the Credit under this Act.
5    (c) The Credit shall be claimed for the taxable years
6specified in the Agreement.
7    (d) The Credit shall not exceed the Incremental Income Tax
8attributable to the project that is the subject of the
9Agreement.
10    (e) Nothing herein shall prohibit a Tax Credit Award to an
11Applicant that uses a PEO if all other award criteria are
12satisfied.
13    (f) In lieu of the Credit allowed under this Act against
14the taxes imposed pursuant to subsections (a) and (b) of
15Section 201 of the Illinois Income Tax Act for any taxable year
16ending on or after December 31, 2009, the Taxpayer may elect to
17claim the Credit against its obligation to pay over withholding
18under Section 704A of the Illinois Income Tax Act.
19        (1) The election under this subsection (f) may be made
20    only by a Taxpayer that (i) is primarily engaged in one of
21    the following business activities: water purification and
22    treatment, motor vehicle metal stamping, automobile
23    manufacturing, automobile and light duty motor vehicle
24    manufacturing, motor vehicle manufacturing, light truck
25    and utility vehicle manufacturing, heavy duty truck
26    manufacturing, motor vehicle body manufacturing, cable

 

 

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1    television infrastructure design or manufacturing, or
2    wireless telecommunication or computing terminal device
3    design or manufacturing for use on public networks and (ii)
4    meets the following criteria:
5            (A) the Taxpayer (i) had an Illinois net loss or an
6        Illinois net loss deduction under Section 207 of the
7        Illinois Income Tax Act for the taxable year in which
8        the Credit is awarded, (ii) employed a minimum of 1,000
9        full-time employees in this State during the taxable
10        year in which the Credit is awarded, (iii) has an
11        Agreement under this Act on December 14, 2009 (the
12        effective date of Public Act 96-834), and (iv) is in
13        compliance with all provisions of that Agreement;
14            (B) the Taxpayer (i) had an Illinois net loss or an
15        Illinois net loss deduction under Section 207 of the
16        Illinois Income Tax Act for the taxable year in which
17        the Credit is awarded, (ii) employed a minimum of 1,000
18        full-time employees in this State during the taxable
19        year in which the Credit is awarded, and (iii) has
20        applied for an Agreement within 365 days after December
21        14, 2009 (the effective date of Public Act 96-834);
22            (C) the Taxpayer (i) had an Illinois net operating
23        loss carryforward under Section 207 of the Illinois
24        Income Tax Act in a taxable year ending during calendar
25        year 2008, (ii) has applied for an Agreement within 150
26        days after the effective date of this amendatory Act of

 

 

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1        the 96th General Assembly, (iii) creates at least 400
2        new jobs in Illinois, (iv) retains at least 2,000 jobs
3        in Illinois that would have been at risk of relocation
4        out of Illinois over a 10-year period, and (v) makes a
5        capital investment of at least $75,000,000;
6            (D) the Taxpayer (i) had an Illinois net operating
7        loss carryforward under Section 207 of the Illinois
8        Income Tax Act in a taxable year ending during calendar
9        year 2009, (ii) has applied for an Agreement within 150
10        days after the effective date of this amendatory Act of
11        the 96th General Assembly, (iii) creates at least 150
12        new jobs, (iv) retains at least 1,000 jobs in Illinois
13        that would have been at risk of relocation out of
14        Illinois over a 10-year period, and (v) makes a capital
15        investment of at least $57,000,000; or
16            (E) the Taxpayer (i) employed at least 2,500
17        full-time employees in the State during the year in
18        which the Credit is awarded, (ii) commits to make at
19        least $500,000,000 in combined capital improvements
20        and project costs under the Agreement, (iii) applies
21        for an Agreement between January 1, 2011 and June 30,
22        2011, (iv) executes an Agreement for the Credit during
23        calendar year 2011, and (v) was incorporated no more
24        than 5 years before the filing of an application for an
25        Agreement.
26        (1.5) The election under this subsection (f) may also

 

 

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1    be made by a Taxpayer for any Credit awarded pursuant to an
2    agreement that was executed between January 1, 2011 and
3    June 30, 2011, if the Taxpayer (i) is primarily engaged in
4    the manufacture of inner tubes or tires, or both, from
5    natural and synthetic rubber, (ii) employs a minimum of
6    2,400 full-time employees in Illinois at the time of
7    application, (iii) creates at least 350 full-time jobs and
8    retains at least 250 full-time jobs in Illinois that would
9    have been at risk of being created or retained outside of
10    Illinois, and (iv) makes a capital investment of at least
11    $200,000,000 at the project location.
12        (1.6) The election under this subsection (f) may also
13    be made by a Taxpayer for any Credit awarded pursuant to an
14    agreement that was executed within 150 days after the
15    effective date of this amendatory Act of the 97th General
16    Assembly, if the Taxpayer (i) is primarily engaged in the
17    operation of a discount department store, (ii) maintains
18    its corporate headquarters in Illinois, (iii) employs a
19    minimum of 4,250 full-time employees at its corporate
20    headquarters in Illinois at the time of application, (iv)
21    retains at least 4,250 full-time jobs in Illinois that
22    would have been at risk of being relocated outside of
23    Illinois, (v) had a minimum of $40,000,000,000 in total
24    revenue in 2010, and (vi) makes a capital investment of at
25    least $300,000,000 at the project location.
26        (1.7) Notwithstanding any other provision of law, the

 

 

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1    election under this subsection (f) may also be made by a
2    Taxpayer for any Credit awarded pursuant to an agreement
3    that was executed or applied for on or after July 1, 2011
4    and on or before March 31, 2012, if the Taxpayer is
5    primarily engaged in the manufacture of original and
6    aftermarket filtration parts and products for automobiles,
7    motor vehicles, light duty motor vehicles, light trucks and
8    utility vehicles, and heavy duty trucks, (ii) employs a
9    minimum of 1,000 full-time employees in Illinois at the
10    time of application, (iii) creates at least 250 full-time
11    jobs in Illinois, (iv) relocates its corporate
12    headquarters to Illinois from another state, and (v) makes
13    a capital investment of at least $4,000,000 at the project
14    location.
15        (1.8) The election under this subsection (f) may also
16    be made if:
17            (i) the agreement awarding the Credit was executed
18        on or after the effective date of this amendatory Act
19        of the 98th General Assembly but not later than 150
20        days after the effective date of this amendatory Act of
21        the 98th General Assembly;
22            (ii) the taxpayer is primarily engaged in retail
23        and business-to-business office products distribution,
24        sales, and service;
25            (iii) the taxpayer maintains its corporate
26        headquarters in Illinois;

 

 

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1            (iv) the taxpayer employs a minimum of 2,050
2        full-time employees at its corporate headquarters and
3        non-retail corporate locations in Illinois at the time
4        of application;
5            (v) the taxpayer retains at least 2,050 full-time
6        jobs in Illinois that would have been at risk of being
7        relocated outside of Illinois as a result of a business
8        combination with a third party;
9            (vi) the taxpayer creates at least 200 full-time
10        jobs in Illinois as a result of a business combination
11        with a third party;
12            (vii) the taxpayer's total aggregate revenue, when
13        combined with that third party, was at least
14        $17,500,000,000 in 2012; and
15            (viii) the taxpayer makes a capital investment of
16        at least $150,000,000 at the project location.
17        (2) An election under this subsection shall allow the
18    credit to be taken against payments otherwise due under
19    Section 704A of the Illinois Income Tax Act during the
20    first calendar year beginning after the end of the taxable
21    year in which the credit is awarded under this Act.
22        (3) The election shall be made in the form and manner
23    required by the Illinois Department of Revenue and, once
24    made, shall be irrevocable.
25        (4) If a Taxpayer who meets the requirements of
26    subparagraph (A) of paragraph (1) of this subsection (f)

 

 

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1    elects to claim the Credit against its withholdings as
2    provided in this subsection (f), then, on and after the
3    date of the election, the terms of the Agreement between
4    the Taxpayer and the Department may not be further amended
5    during the term of the Agreement.
6    (g) A pass-through entity that has been awarded a credit
7under this Act, its shareholders, or its partners may treat
8some or all of the credit awarded pursuant to this Act as a tax
9payment for purposes of the Illinois Income Tax Act. The term
10"tax payment" means a payment as described in Article 6 or
11Article 8 of the Illinois Income Tax Act or a composite payment
12made by a pass-through entity on behalf of any of its
13shareholders or partners to satisfy such shareholders' or
14partners' taxes imposed pursuant to subsections (a) and (b) of
15Section 201 of the Illinois Income Tax Act. In no event shall
16the amount of the award credited pursuant to this Act exceed
17the Illinois income tax liability of the pass-through entity or
18its shareholders or partners for the taxable year.
19(Source: P.A. 96-834, eff. 12-14-09; 96-836, eff. 12-16-09;
2096-905, eff. 6-4-10; 96-1000, eff. 7-2-10; 96-1534, eff.
213-4-11; 97-2, eff. 5-6-11; 97-636, eff. 6-1-12.)
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.".